According to the Israeli military, a rocket from Gaza was intercepted by air defenses.
After sirens were sounded at the border, Israelis ran to bomb shelters.
Another development was that Palestinian officials claimed on Saturday that a Jewish settler had shot dead a Palestinian in the occupied West Bank.
According to reports, several settlers armed with rifles and pistols approached Qrawat Bani Hassan.
According to Reuters, a Palestinian eyewitness said that one shot killed Mothqal Rayyan (27 years old).
Israeli police reported that two Israeli children and an infant were killed when a Palestinian driver drove his car into a group at a Jerusalem bus stop.
Officers added that the driver, a East Jerusalem native of 31 years, was killed on the spot.
Benjamin Netanyahu, Prime Minister of Israel, described the incident in terrorist attacks.
Tensions have flared in the region since seven people were shot to death by a Palestinian gunman in Jerusalem’s synagogue last month.
Mr Netanyahu promised a “strong, quick and precise” reply.
Two people were injured after a thirteen-year-old boy opened fire on Jerusalem hours after the shootings at the synagogue.